Rhythm Pharmaceuticals (NASDAQ:RYTM – Get Free Report) issued its quarterly earnings data on Tuesday. The company reported ($0.61) EPS for the quarter, beating the consensus estimate of ($0.71) by $0.10, Zacks reports. The firm had revenue of $92.13 million during the quarter, compared to the consensus estimate of $85.56 million. Rhythm Pharmaceuticals had a negative net margin of 85.59% and a negative return on equity of 159.87%. The company’s quarterly revenue was up 79.6% compared to the same quarter last year. During the same period in the prior year, the firm posted ($0.82) earnings per share.
Here are the key takeaways from Rhythm Pharmaceuticals’ conference call:
- Strong U.S. acquired hypothalamic obesity launch: Q3 global IMCIVREE revenue rose 29% sequentially to $92.1 million, with U.S. revenue of $67.5 million. Rhythm reported more than 700 acquired HO patient start forms, over 500 prescribers, and continued demand growth entering Q4.
- Encouraging market access: Approximately 60% of Medicaid-covered lives and 75% of commercial-covered lives were covered by acquired HO policies at quarter-end, while more than 80% of reimbursement approvals were obtained within 60 days of receiving a start form.
- International expansion is underway: IMCIVREE launched in Japan on October 14 at a price of approximately $2,200 per vial, with more than 1,000 potentially eligible patients identified. Rhythm expects Japan to become its second-largest market, although two-week prescription limits may constrain first-year revenue; European launches are expected to begin in 2027.
- Pipeline expansion: Rhythm plans to initiate a phase III bivamelagon study in hypothalamic obesity in early 2027 and pursue a six-month phase III Prader-Willi syndrome study focused on hyperphagia. Management also expects to develop next-generation MC4R therapies and potential combination approaches.
- Higher financing obligations: Rhythm amended its LG Chem agreement to reduce potential royalties to a 1% flat rate, but committed to $350 million in payments over four years and took an initial $250 million term loan at SOFR plus 4.6%. The company ended Q3 with about $321 million in cash and investments, excluding these transaction-related cash flows.
Rhythm Pharmaceuticals Price Performance
Shares of NASDAQ:RYTM traded down $9.55 during mid-day trading on Tuesday, reaching $83.89. 2,764,239 shares of the company traded hands, compared to its average volume of 760,835. The company’s 50 day moving average price is $96.85 and its 200-day moving average price is $97.29. The firm has a market cap of $5.75 billion, a PE ratio of -26.75 and a beta of 2.01. Rhythm Pharmaceuticals has a 52 week low of $74.50 and a 52 week high of $122.20.
Insider Activity at Rhythm Pharmaceuticals
In other Rhythm Pharmaceuticals news, insider Alastair Garfield sold 7,763 shares of the company’s stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $117.57, for a total value of $912,695.91. Following the completion of the transaction, the insider directly owned 2,295 shares in the company, valued at $269,823.15. This represents a 77.18% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO David P. Meeker sold 50,000 shares of the stock in a transaction on Monday, September 14th. The stock was sold at an average price of $102.67, for a total transaction of $5,133,500.00. Following the completion of the sale, the chief executive officer directly owned 239,258 shares of the company’s stock, valued at approximately $24,564,618.86. This trade represents a 17.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 258,450 shares of company stock worth $28,796,497 in the last 90 days. Insiders own 5.90% of the company’s stock.
Analyst Ratings Changes
A number of brokerages recently issued reports on RYTM. Citigroup restated a “market outperform” rating on shares of Rhythm Pharmaceuticals in a report on Wednesday, August 5th. Leerink Partners started coverage on Rhythm Pharmaceuticals in a research report on Monday, September 14th. They issued an “outperform” rating and a $133.00 price objective on the stock. William Blair started coverage on Rhythm Pharmaceuticals in a research note on Friday, October 16th. They set an “outperform” rating on the stock. Citizens Jmp upped their target price on Rhythm Pharmaceuticals from $155.00 to $160.00 and gave the company a “market outperform” rating in a report on Wednesday, August 5th. Finally, HC Wainwright raised their price target on Rhythm Pharmaceuticals from $105.00 to $130.00 and gave the stock a “buy” rating in a research note on Monday, October 12th. Eighteen analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $142.50.
View Our Latest Stock Analysis on RYTM
About Rhythm Pharmaceuticals
Rhythm Pharmaceuticals, Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare genetic diseases of obesity and related metabolic disorders. The company’s work is based on the melanocortin-4 receptor (MC4R) pathway, which plays an important role in regulating hunger and energy balance.
Rhythm’s principal product is IMCIVREE (setmelanotide), a targeted therapy designed to restore impaired MC4R pathway signaling. In the United States, IMCIVREE is approved for chronic weight management in adults and children at least 6 years old with obesity caused by certain genetic deficiencies, including POMC, PCSK1, or LEPR deficiency, as well as Bardet-Biedl syndrome.
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